Wednesday 29 May 2024
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AUSTRALIA – RTD tea market dominated by Unilever and its Lipton

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  • Dalla Corte
TME - Cialdy Evo
Demuslab

The Australian RTD tea market grew by 10% in total volume and 9% in total value terms in 2012, to reach record volume sales of 54 million litres and A$239 million. According to the Australian RTD Tea Market Report from Euromonitor, These high growth rates were still indicative of the maturing of RTD tea, as the category witnessed CAGRs of 17% in both total value and volume terms over the past four years.

This more moderate growth was due to the duopoly in RTD tea, which inevitably limits “new and interesting” activities.

La Cimbali

Consumers of RTD tea look for exciting, refreshing, and indulgent flavours when purchasing the products, as well as for health and wellness features.

Unlike RTD coffee, which is most popular amongst young males, young female adults are the most conspicuous consumers of RTD tea, and are the target market of manufacturers. The perceived health benefits of tea in comparison to coffee are the main reason for this.

Gimoka

The Australian RTD tea industry remained a highly concentrated competitive landscape in 2012. The two leading players, Unilever and Coca-Cola, accounted for 91% of off-trade volume sales throughout the year.

The leading player, Unilever, represented 74% of off-trade volume sales in 2012. The company benefits from a high profile in tea in Australia.

Health and wellness will continue to be an important area of development within RTD tea, and will likely come in the expansion of sugar-free or reduced-calorie RTD tea options or through fortification.

Despite its healthy image, Australians are becoming increasingly aware of the high-sugar content in RTD tea and will push for healthier versions of the drink.

CIMBALI

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